The enhanced tax collection at source (TCS) of 20 per cent on foreign investments, foreign tours, etc blocks your funds, and adjusting the same against taxes payable can be a challenge, unless you do it the right way.
TCS on foreign remittances from October 1, 2023: The Budget 2023 hiked TCS on foreign remittances of more than Rs 7 lakh through the LRS to 20% for investments in overseas assets, real estate, bonds, foreign company stocks, etc. The higher rate comes into effect on October 1, 2023. If you directly invest in international stocks, you should know how the new TCS rule is going to impact your investment from tomorrow.
Starting from October 1, 2023, all overseas outward remittances, except for medical and educational purposes, over a threshold limit of Rs 7 lakh in a financial year will attract a tax collection at source (TCS) of 20%. From an international trip to investments in foreign stocks, mutual funds, or cryptocurrencies abroad, or going abroad for higher studies, know how much TCS